Effect of Ownership Structure on Financial Performance of Manufacturing Firms Listed at the Nairobi Securities Exchange, Kenya

Abstract

The exploration inspected the impact of proprietorship structure on monetary execution of assembling firms recorded at the Nairobi Securities Exchange in Kenya. Specific objectives depended on the free factors which included; government, foreign, local and management ownership structures. The review was directed by the agency hypothesis, stakeholder hypothesis and stewardship hypothesis. The review led an in-depth examination of both experimental and theoretical audit; a spellbinding an exploration configuration was utilized in this review and designated a sum of 10 assembling firms recorded at the Nairobi protections Exchange. Information was gathered from designated association's bookkeeping records for the period 2016 to 2020. Gathered information was investigated utilizing both distinct and inferential measurements utilizing factual bundle for sociologies. The review set up a positive and huge relationship between government possession and execution, this kind of proprietorship was distinguished to be more powerful at British American Tobacco and Carbacid. The discoveries gave a positive however unimportant relationship between foreign proprietorship and monetary execution. Foreign proprietorship was found to have more impact on monetary execution of British American Tobacco and Carbacid. Moreover, the discoveries gave a positive however inconsequential relationship between management possession and monetary execution. Management possession was found to impact monetary execution of Aubumann and Unga bunch fabricating. Finally, the discoveries gave a positive yet immaterial relationship between local proprietorship and monetary execution. This sort of proprietorship was recognized to be more powerful at Eveready East Africa and Kenya Orchards Ltd. The review reasoned that proprietorship design of recorded assembling firms influences monetary execution. In light of the discoveries of the review suggested the requirement for firm directors and general financial backers to be prepared on best proprietorship plan that can help company's usefulness.